TNAG-2270-FCO40-3269-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1991 — Page 10

CONFIDENTIAL

Assessment of Staff Proposals on

Dependant Pensions and Related Benefits

Annex B

1.

Proposals re-submitted by staff include

-

(a)

separate funding of the WCPS and WOPS;

(b)

total rate of contribution under the WCPS to be shared equally between Government and staff;

(c)

full refund of WCPS contributions to married members on resignation with a deferred service pension or on opting out of the scheme; and

(d)

extension of the pensionable age limit children in full time education from 23 to 25.

for

2.

have

We

re-examined these proposals and found that the reasons for not supporting them previously (which were set out in memorandum XCC (90)61 and discussed on 8 May 1990) remain valid today. In the absence of other extenuating factors, we do not support these proposals.

3.

New proposals put forward by staff include

Interest on Refund of, WCPS Contributions

and Salary for Buying Back Contributory Service

4.

At present, interest at amount of returned

simple

contribution.

service upon

for

refund of normal WCPS contributions, 1.5% per annum is added to the aggregate contributions for the entire period of For officers who wish to buy back contributory joining the WCPS, arrears of contribution are calculated on the basis of the officer's current salary. Staff consider that these two arrangements are inconsistent and work to their disadvantage. They suggest that compound interest should be used for refund of past contributions or alternatively, an officer's past actual salary should be used in calculating the arrears of contributions.

CONFIDENTIAL